Mj /all30 Mar 2012 14:39
The Company announced on 27 October 2010 that it had entered into the CAR Option Deed pursuant to which the Company has been granted an option to acquire the entire issued share capital of CAR. Since then the Company has been conducting due diligence on CAR, PAR and Alji and the Alji Projects and has exercised the CAR Option. The Company will, subject to Shareholder approval on Completion issue 83,333,333 Consideration Shares to the Vendors at an implied price of 3p per share (representing a premium of approximately 275 per cent. per cent. to the Closing Price) as consideration for the acquisition of CAR. As a result of the Acquisition, the Company will acquire a controlling stake in the Cholokkaindy Project in the Kyrgyz Republic. The Company will also acquire a controlling stake in the Uzunbulak Project, however, the Board has decided not to pursue this lithium exploration project which, subject to consent by the Mining Industry Regulator, will be transferred out of the Enlarged Group following Admission.
The Company also announced on 27 October 2010 that, pursuant to the Warrant Instrument, the Company issued Warrants to subscribe for a total of 186,713,755 Ordinary Shares in aggregate. The Company will apply for the Warrants to be admitted to trading on AIM.
In addition, the Company announced on 21 March 2011 and 12 May 2011 a Placing raising a combined £2.24 million (before expenses) from certain shareholders and other investors through the issue of 74.65 million Ordinary Shares at 3 pence per Ordinary share. The Placing was not conditional on completion of the Acquisition. The proceeds received through the Placing are being used to fund planned exploration work in the Cholokkaindy Project and for general working capital purposes.
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